Remodeling Market Index Hits Nine-Year High

Washington, DC, Oct. 25, 2013 -- The Remodeling Market Index continued to climb at a modest pace in the third quarter, rising two points to 57, the highest reading since the first quarter of 2004, according to the National Association of Home Builders.

An reading above 50 indicates that more remodelers report market activity is higher than report it is lower.

The overall index averages ratings of current remodeling activity with indicators of future remodeling activity. The current market conditions index rose from 54 in the previous quarter to 58, the highest reading since the creation of the RMI in 2001, driven partly by rising existing home sales.

“The growth in home equity and home sales prompted home owners to remodel as they prepare to move or undertake upgrades that they put off during tough times,” said NAHB Remodelers Chairman Bill Shaw, a remodeler from Houston.

All three major components of the RMI’s current market conditions index increased in the third quarter.  Major additions and alterations increased from 51 to 55, minor additions and repairs from 55 to 58 and maintenance and repair from 57 to 59. The future market indicators component of the RMI remained even with the previous quarter reading of 56. 

“In addition to existing home sales, which support remodeling activity as owners fix up their homes before and after a move, remodeling has benefitted from rising home values,” said NAHB Chief Economist David Crowe.

“This boosts home equity that owners can tap to finance remodeling projects. We expect existing home sales and house prices to increase, but at a slower rate over the next year, so the demand for remodeling services should also increase, but more gradually over that period.”



Other Archived Articles

WFCA Lobbies for Internet Sales Taxes   Full Article
Anaheim, CA, Dec. 2, 2014 -- World Floor Covering Association officials recently met with the staffs of top members of Congress about proposed Internet sales taxes and and other issues of importance to flooring industry retailers.

Construction Spending Edges Higher in October   Full Article
Washington, DC, Dec. 2, 2014 -- Construction spending in October was estimated at a seasonally adjusted annual rate of $971.0 billion, 1.1% above the revised September estimate of $960.3 billion, according to the Commerce Department.

Distributor Belknap White Expands Armstrong Line   Full Article
Lancaster, PA, Dec. 2, 2014 -- Armstrong Floor Products said that distributor Belknap White (Patriot) will handle Armstrong residential products in Southern Connecticut, Metro New York and Northern New Jersey effective January.

Easy Turf Signs Tomlinson as Spokesperson   Full Article
Vista, CA, Dec. 2, 2014 -- EasyTurf has re-signed NFL Most Valuable Player LaDanian Tomlinson as a spokesperson.

Manufacturing Continues To Expand in November   Full Article
Washington, DC, Dec. 1, 2014 -- Manufacturing continued to expand in November but at a slightly slower pace, according to the Institute for Supply Management.

Carpetland USA Colortile Holds Buying Meeting   Full Article
Chattanooga, TN, Dec. 1, 2014 -- Carpetland USA Colortile held its 2014 Buying Committee Meeting in Chattanooga Nov. 17-18

FloorFolio Gets Second Patent for EnviroQuiet   Full Article
Edison, NJ, Dec. 1, 2014 -- FloorFolio Industries said it has received a second patent for EnviroQuiet luxury vinyl tile.

INSTALL Adds Five New Members   Full Article
Haddonfield, NJ, Dec. 1, 2014 -- INSTALL has added five new partner companies to its ranks. The newest companies are:

Durable Goods Orders Up on Military Spending   Full Article
Washington, DC, Nov. 26, 2014 -- Durable-goods orders rose last month mostly due to military spending, the Commerce Department said.

Consumer Spending, Income Rise in October   Full Article
Washington, DC, Nov. 26, 2014 -- U.S. consumer spending picked up at a modest pace in October, according to the Commerce Department.

Consumer Sentiment Continues To Rise   Full Article
Ann Arbor, MI, Nov. 26, 2014 -- Consumer sentiment in November hit its highest level in more than seven years, according to the Thomson Reuters/University of Michigan's final November reading.

New Home Sales Hit Five-Month High   Full Article
Washington, DC, Nov. 26, 2014 -- Sales of new single-family homes edged up in October to the fastest rate in five months, according to the Commerce Department.

Initial Jobless Claims Rise Last Week   Full Article
Washington, DC, Nov. 26, 2014 -- Initial claims for unemployment benefits unexpectedly rose last week to the highest level since September, according to the Labor Department.

Pending Home Sales Dip in October   Full Article
Washington, DC, Nov. 26, 2014 -- Pending home sales fell 1.1% in October, the National Association of Realtors reported Wednesday.

Mortgage Applications Decline Last Week   Full Article
Washington, DC, Nov. 26, 2014 -- Mortgage applications last week fell 4.3% from one week earlier, according to the Mortgage Bankers Association.

Dixie Group, Desso Terminate Joint Venture   Full Article
Chattanooga, TN, Nov. 26, 2014 -- Dutch carpet firm Desso and The Dixie Group have terminated their joint sales venture agreement.

USGBC Names Directors, Officers   Full Article
Washington, DC, Nov. 26, 2014 -- The U.S. Green Building Council announced today the newly elected and appointed officers and directors to its 2015 Board of Directors.

Installation Apprentice School To Open Next Year   Full Article
Dalton, GA, Nov. 25, 2014 -- A non-profit floorcovering installation apprentice school has been set up in Dalton.

House Prices Increase in Third Quarter   Full Article
Washington, DC, Nov. 25, 2014 -- House prices rose 0.9% in the third quarter, according to the Federal Housing Finance Agency House Price Index.

Home Prices Rise from a Year Ago   Full Article
Washington, DC, Nov. 24, 2014 -- U.S. home prices year-over-year rose 4.9% in September-- the slowest pace since October 2012 -- compared with annual growth of 5.6% in August.